Amber Enterprises India Ltd. · NSE:AMBER
Amber Enterprises India — Q4 FY2018 Earnings Presentation
40 slides from Amber Enterprises India's earnings presentation, May 2018
Slide 1: Amber Enterprises India Ltd Investor Presentation May 2018
Amber Enterprises India Ltd Investor Presentation : May 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Amber Enterprises India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: Growth Momentum Continues
Growth Momentum Continues* ₹ Crs +12% +20% +47% 692 68 34 617 56 23 Q4 FY17 Q4FY18 Q4FY17 Q4FY18 Q4FY17 Q4FY18 ₹ Crs +29% +41% +181% 2,128 184 62 1,652 131 22 FY17 FY18 FY17 FY18 FY17 FY18 Leadership through Innovation *Quarterly data are on standalone basis; Yearly data are on Consolidated basis 3
Slide 4: Key Ratios
Key Ratios 35.0 3.3 3.0 29.0 FY17 FY18 FY17 FY18 17.8% 9.9% 13.9% 7.0% FY17 FY18 FY17 FY18 Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency Leadership through Innovation All data on consolidated basis 4
Slide 5: Revenue Mix
Revenue Mix FY 17 Revenue Mix across Segments FY 18 Revenue Mix across Segments 12.8% 14.6% 11.5% 13.8% 71.7% 75.8% Air Conditioner's AC Components Non AC Components Air Conditioner's AC Components Non AC Components Leadership through Innovation All data on consolidated basis 5
Slide 6: Strong Growth across Segments
Strong Growth across Segments Value Growth Revenues (in. Crs) Particulars Q4 FY17 Q4 FY18 % Growth FY17 FY18 % Growth Air Conditioner’s 501.87 559.34 11.5% 1,251.83 1,524.94 21.8% AC Components 88.70 143.38 61.6% 189.27 293.24 54.9% Non AC Components 68.43 132.64 93.8% 210.76 309.90 47.0% Total 658.
Slide 7: Outperforming the Industry
Outperforming the Industry Amber’s Growth (Volume) Amber Growth (Value) Units in ‘000 ₹ Crs 1,910 2,128 +26.2% +28.8% +21.6% 1,514 1,652 +38.7% 1,230 1,089 973 800 684 516 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Leadership through Innovation All data on consolidated basis 7
Slide 8: Seasonality in Sales for FY18
Seasonality in Sales for FY18 Sales in value Air Conditioner’s ₹ Crs ₹ Crs 835 559 512 656 362 265 274 188 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 AC Components Non AC Components ₹ Crs 143 ₹ Crs 133 82 61 54 50 47 32 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Leadership through Innovation All data on consolidated basis 8
Slide 9: Profit & Loss Statement
Profit & Loss Statement Standalone Consolidated Particulars (Rs in. Crs) Q4 FY18 Q4 FY17 Change FY18 FY17 Change Revenue from Operations 692.0 652.2 2,171.5# 1,735.8 Less: Excise duty - 35.0 43.4 84.0 Total Revenue 692.0 617.2 12.1% 2,128.1 1,651.8 28.8% Raw Material 575.9 518.5 1,768.8 1,371.2 Empl
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs in. Crs.) 31-Mar-18 31-Mar-17 Particulars (Rs in. Crs.) 31-Mar-18 31-Mar-17 Non-Current Assets 765 600 Equity 893 363 Property, Plant and Equipment 563 463 Capital work-in-progress 9 9 Equity Share Capital 31 24 Goodwil 65 34 Other Equity 861 339 Other Inta
Slide 11: Strategic Priorities
Strategic Priorities
Slide 12: Strategic Priorities 2018-2020
Strategic Priorities 2018-2020 Product Expansion Customer Expansion Geography Expansion ▪ Special focus on new models of IOT based Inverter RAC ▪ Add RAC components such as ▪ Increase wallet share per Customer brushless DC Motor, Resin-core ▪ Increase customer acceptance of motors & inverter control
Slide 13: The Leadership Company
The Leadership Company
Slide 14: Leading Integrated Solution Provider for RAC
Leading Integrated Solution Provider for RAC… Incorporated in 1990, Amber has emerged as a market leader in Indian Room AC OEM/ODM industry Comprehensive product portfolio - Room AC, Reliable Critical Components with long approval cycle One of the Largest Manufacturer & Supplier of critical componen
Slide 15: …with 3 decades of History
…with 3 decades of History Acquisition of Incorporated in Jalandhar, Acquisition of PICL Started Noida Ecotech Unit IL JIN Punjab Dehradun Unit 5 Dehradun Unit 6 Jhajjhar Unit Exit to Green India IPO Started Dehradun Unit 4 established established establsihed Venture Fund 1990 1994 2004 2006 2008 20
Slide 16: Our facilities are Strategically located near Customers
Our facilities are Strategically located near Customers… PCBs for Air Conditioners & RAC (IDU, ODU &WAC), other Consumer durable Heat Exchangers, System products like washing tubing, Plastic molding & machine, microwave etc. Sheet metal parts Greater Noida, Dehradun 3 units IL JIN R & D Lab, Tool RA
Slide 17: …having facilities across 7 locations
…having facilities across 7 locations Dehradun Unit 4 Dehradun Unit 5 Dehradun Unit 6 IL JIN Unit Jhajjar Unit Ecotech Unit Kasna Unit Rajpura Unit Pune Unit PICL Unit Leadership through Innovation 17
Slide 18: Our Strategy that drives Leadership
Our Strategy that drives Leadership Leadership Strategy Product Portfolio Research & Development Backward Integration Economies of Scale Customer Relationships RAC (IDU, ODU & WAC) & Reliable & Critical High focus on ODM through Enables Flexibility & Cost Justify investment of Capital, 8 out of top
Slide 19: Our Comprehensive Product Portfolio
Our Comprehensive Product Portfolio RAC Energy Rating Capacity 1 ton Spilt AC 1.5 ton 2 ton Inverter AC (1, 1.5 & 2 ton) 1 ton Window AC 1.5 ton 2 ton Components Heat exchangers Injection moulding Multi flow Sheet metal condenser components Printed circuit Motor System tubing board Leadership throug
Slide 20: We offer Critical and Reliable Functional Components
We offer Critical and Reliable Functional Components… One of Largest Manufacturer and Supplier of Critical & Reliable Components in Room AC segment & other consumer durable products AC Components Non AC Components Printed Circuit Printed Circuit Boards Heat Exchangers System Tubing Washing Machine T
Slide 21: High degree of Backward Integration
…High degree of Backward Integration…. Outdoor Units* Indoor Units Window ACs 49% 78% 60% Amber Compressors Outsourced Amber Outsourced Amber Compressors Outsourced Critical Compressors Entry into New Flexibility & Reliable are Largely Brands through and Functional Imported Components Cost Control C
Slide 22: Our Products have Huge Entry Barriers
Our Products have Huge Entry Barriers Retaining Acquiring Customers Customers Through persistent investment of time and efforts Product approval cycle especially for leading brands can be as long as 2-3 years Cross Selling Gaining Confidence Opportunities Adapt it to your needs and Move to reliabili
Slide 23: Product Upgradation and Innovation through R & D
Product Upgradation and Innovation through R & D… Software's such as 3D modeling, product life cycle management Certifications: ▪ Approved by Department of Scientific & Industrial Research (DSIR) ▪ Accredited by National Accreditation Structure Design Board for Testing & Calibration Laboratories (NA
Slide 24: …drive ODM business through our R&D capabilities
…drive ODM business through our R&D capabilities One of the few Indian manufacturers with the capability to Amber designs & manufactures Inverter AC Models Amber’s R&D and design and manufacture Inverter ACs product design capabilities R&D 12% Facilities 16% Leads to high 72% Proportion of ODM busin
Slide 25: We are Serving Leadership in the RAC Industry
We are Serving Leadership in the RAC Industry Our Customer commands 75% Market Share Most of the Customers associated with Amber for 5 Years Collaborative Approach for new products with Customers The Brand Names/Model Designations mentioned in the Product List are the property of their respective Le
Slide 26: …with Experienced Leadership & Management Team
…with Experienced Leadership & Management Team ▪ Over 13 years of experience in RAC ▪ Over 9 years of experience in RAC Manufacturing sector Manufacturing sector ▪ Instrumental in successful commissioning of 6 ▪ Previously worked with Morgan Stanley in factories in last 10 years New York ▪ Initiated
Slide 27: …with Testimony from our Customers
…with Testimony from our Customers Year Particulars Consistently recognized by customers for performance, infrastructure, quality & support • ‘Best Support: Green Supply Chain’ from Godrej for 2016-2017. • Gold award in relation to green company rating system from CII- 2017 Sohrabji Godrej Green Bus
Slide 28: Product Market Update
Product Market Update
Slide 29: RAC’s is highly underpenetrated in India
RAC’s is highly underpenetrated in India RAC Penetration v/s other Consumer Durables Exponential Growth in China 105 100.2 85% 89% India RAC Penetration Global 95 lagged other 96.3 70% 60% consumer durable 94.3 85 30% 75 20% 71.4 10% 65 RAC Penetration 4% crossed 100% 61.2 55 Room AC Refrigerator Wa
Slide 30: Brands are focussed on Asset Light Strategy for growth
Brands are focussed on Asset Light Strategy for growth… FY12 FY17 FY22E Brands focusing on Asset Light Strategy with focus 16% 34% on 44% Innovation, Marketing & Distribution 84% 66% 56% ODMs have economies of OEM/ODM RAC OEM/ODM RAC OEM/ODM RAC scale with qualitative Mn Total RAC Volume OEM/ODM Vol
Slide 31: …leading to solid growth in a Structural Deficit Market
…leading to solid growth in a Structural Deficit Market Break down of RAC Sourcing (FY17) ODM allows faster product development, design support along with manufacturing Imports 15% ODM is a step forward in gaining customer confidence besides acquiring higher wallet share OEM/ODM 34% RAC brands avoid
Slide 32: Huge Opportunity: Underpenetrated & Latent Demand
Huge Opportunity : Underpenetrated & Latent Demand Room AC Washing Machine Refrigerator 30% FPD TV 70% Global Penetration* 85% 89% Huge Potential Existing Underpenetrating per house Aspirational Buying 1-2 Units per House Multiple Units per House Behaviour 1-2 Units Per House 1-2 Units per House Ins
Slide 33: Acquisitions: Access to Future Ready Technology
Acquisitions : Access to Future Ready Technology Mechanical Product Smart Electronic Product
Slide 34: Acquisitions to add Future Ready Technology
Acquisitions to add Future Ready Technology IL JIN Electronics Ever Electronics Mechanical Product to Smart Electronic Product Amber’s Position Growth Drivers Leadership through Innovation 34
Slide 35: Range of Products
Range of Products Leadership through Innovation 35
Slide 36: Glimpse of the Manufacturing Facilities of IL JIN
Glimpse of the Manufacturing Facilities of IL JIN Leadership through Innovation 36
Slide 37: Long Term Value Creation
Long Term Value Creation
Slide 38: Consolidated Operating Performance
Consolidated Operating Performance Rs. (In Crs.) Total Income EBITDA 2,128 +21.6% 184 1,652 +25.2% 1,230 131 1,089 103 114 973 75 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBIT PAT 143 62 +22.9% +29.3% 99 83 86 63 29 22 24 22 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 For FY14, FY15 &
Slide 39: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Rs. In Crs FY18 FY17 FY16 FY15 FY14 Revenue from operations 2,172 1,736 1,145 1,281 1,014 Excise duty 43 84 56 51 41 Total Revenue 2,128 1,652 1,089 1,230 973 Raw Material 1,769 1,371 859 1,013 798 Employee Expenses 50 44 37 34 32 Other Expenses 126 106 80 81 69
Slide 40: Contact Us
Contact Us Company : Investor Relations Advisors : CIN: L28910PB1990PLC010265 CIN: U74140MH2010PTC204285 Mr. Sudhir Goyal Mr. Sagar Shroff / Ms. Payal Dave sudhirgoyal@ambergroupindia.com sagar.shroff@sgapl.net / payal.dave@sgapl.net +91 98205 19303 / +91 98199 16314 www.ambergroupindia.com www.sgap
Amber Enterprises India — Q4 FY2018 Earnings Presentation on 6ix